National
BUDGET: New, increased taxes
Publish Date: Jun 12, 2014
BUDGET: New, increased taxes
Finance minister Maria Kiwanuka. PHOTO/Enock Kakande
  • mail
  • img
newvision

Presumptive tax threshold increased from 1% to 3% to raise revenue. This measure is expected to generate sh8 billion.

Introduced a 15% tax on winnings on sports and pool betting and designate gambling houses as agents to withhold the tax. This measure is expected to generate sh8b.

Terminated exemption on interest income on agricultural loans. The measure is expected to generate sh25.1b.

Introduced capital gains tax on the sale of commercial property to generate sh52b.

Terminated exemption on income derived from educational institutions expected to generate sh15b.

Terminated exemptions on the following supply with effect from 1st July 2014:-
 
i.    Supply of New Computers, Desktop Printers, Computer Parts & Accessories and Computer Software Licenses;
ii.    Supply of hotel accommodation in tourist lodges and hotels outside Kampala District;
iii.    Supply of Liquefied Petroleum Gas;
iv.    Supply of Feeds for Poultry and Livestock
v.    Supply of Agriculture and Diary Machinery
vi.    Supply of Packaging Materials to the Diary and Milling Industries  
vii.    Supply of Salt
viii.    Supply of Insurance Services except medical and life
ix.    Supply of Specialized Vehicles, Plant and Machinery services and civil works related to roads and bridges construction, agriculture, water, education and health.

The above measures are projected to generate sh215b and the details are contained in the VAT (Amendment Bill) 2014.

Termination of the exemptions VAT zero-rated supplies with effect from 1st July 2014:-

i.    Supply of Printing Services for Educational Materials
ii.    Supply of cereals, grown, milled or produced in Uganda
iii.    Supply of processed milk and milk products
iv.    Supply of Machinery and Tools for Agriculture
v.    Supply of Seeds, Fertilizers, Pesticides and Hoes

The measures are projected to yield sh30.4b and the details are contained in the VAT (Amendment Bill) 2014.
Increased excise duty on petrol and diesel by sh50 to increase revenue collections. The measure is expected to raise about sh60b.

Reinstated excise duty on kerosene at sh200 per litre to raise revenue. This measure is expected to generate about sh15b.
Increased excise duty on sugar from sh25 to sh50. This measure is expected to generate about sh7b.

Introduced a 10% excise duty on mobile money transfer services. This measure is expected to generate about sh16b.
Introduced excise duty of 10 percent on bank charges and money transfer fees to generate revenue. This policy will yield sh22b.

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Six people arrested on suspicion of having a hand in the murder of local Muslim clerics are released....
Kabaka rallies parents on child education
Kabaka Ronald Muwenda Mutebi II on Friday appealed to parents to educate their children in order to ensure sustainable development of Buganda....
Uganda can defeat HIV – Mrs. Museveni
The First lady and minister for Karamoja affairs says it is possible for Uganda to defeat HIV/AIDS....
VP meets US special envoy
The Vice President Edward Kiwanuka Ssekandi has assured the United States administration of Uganda’s commitment in promoting peace and tranquility for sustainable development of the great lakes region....
Rev. Canon Naimanhye new bishop of Busoga diocese
The Rev. Canon Paul Moses Samson Naimanhye was elected by the House of Bishops of the Church of Uganda to be the next bishop of Busoga diocese....
Arrests: KCCA tough on street vending
KCCA mounts an operation and arrests and charges over twenty people vending on Kampala streets....
Should faith based organisations be registered as Non-government organisations?
Yes
No
Can't Say
follow us
subscribe to our news letter